Entrepreneurship: What does it REALLY mean?

Introduction:

In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress and improve a country’s economy, the people have to be encouraged and trained to think out-of-the-box and be constantly developing innovative products and services. The once feasible ways of doing business are no longer guarantees for future economic success!

In response to this inevitable change, some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational system, especially at the tertiary level.

Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary schools and encouraging them to be future entrepreneurs when they are of age. In a series of survey funded by Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven out of 10 youths (aged 14-19) were interested in becoming entrepreneurs.

Being an entrepreneur is now the choice of the new generation as compared to the preferred career choices of yesteryears such as being a doctor, lawyer or a fighter pilot. In a recent visit to the bustling city of Shanghai in China, an informal survey was carried out among Chinese youths by the author. The results of the survey showed that being an entrepreneur, especially in the field of computer and e-commerce, is perceived as a ‘cool’ career and is an aspiration for many Chinese youths Prior to the ‘opening up’ of modern China, being an entrepreneur was perceived as the outcome of one’s inability to hold a good government job and those who dared to venture, were often scorned at by their peers. Times have indeed changed.

With this change in mindset and the relative knowledge that entrepreneurs bring forth increased job creations, the awareness and academic studies of entrepreneurship have also heightened. In many tertiary institutes, many courses of entrepreneurship and innovation are being developed and offered to cater to the increasing demand. The term “entrepreneurship” has also evolved with numerous variations. The proliferation of jargons such as netpreneur, biotechpreneur, technopreneur and multipreneur are coined to keep up with the ever-changing times and business conditions that surround us.

In view of these changes, it is important that the definition of entrepreneurship be refined or redefined to enable its application in this 21st century. To put it succinctly, “Good science has to begin with good definitions (Bygrave & Hofer, 1991, p13).” Without the proper definition, it will be laborious for policymakers to develop successful programs to inculcate entrepreneurial qualities in their people and organizations within their country.

The paper will provide a summary of the definitions of entrepreneurship provided by scholars in this subject area. The author will also expand on one of the definitions by Joseph Schumpeter to create a better understanding of the definition of the term “entrepreneurship” as applied in today’s business world.

Entrepreneurship through the Years:

It was discovered that the term ‘entrepreneurship’ could be found from the French verb ‘entreprende’ in the twelfth century though the meaning may not be that applicable today. This meaning of the word then was to do something without any link to economic profits, which is the antithesis of what entrepreneurship is all about today. It was only in the early 1700′s, when French economist, Richard Cantillon, described an entrepreneur as one who bears risks by buying at certain prices and selling at uncertain prices (Barreto, 1989, Casson 1982) which is probably closer to the term as applied today.

In the 1776 thought-provoking book ‘The Wealth of Nations’, Adam Smith explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread. From Smith’s standpoint, entrepreneurs were the economic agents who transformed demand into supply for profits.

In 1848, the famous economist John Stuart Mill described entrepreneurship as the founding of a private enterprise. This encompassed the risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.

One of the definitions that the author feels best exemplifies entrepreneurship was coined by Joseph Schumpeter (1934). He stated that the entrepreneur is one who applies “innovation” within the context of the business to satisfy unfulfilled market demand (Liebenstein, 1995). In elaboration, he saw an entrepreneur as an innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms:

The introduction of a new good or standard of quality;

  • The introduction of a novel method of production;
  • The opening of a new market;
  • The acquisition of a new source of new materials supply; and
  • The carrying out of the new organization in any industry.

Though the term ‘innovation’ has different meanings to different people, several writers tended to see “innovation” in the form of entrepreneurship as one not of incremental change but quantum change in the new business start-ups and the goods/services that they provide (egs, Bygrave, 1995; Bygrave & Hofer, 1991).

In the view of Drucker (1985), he perceived entrepreneurship as the creation of a new organization, regardless of its ability to sustain itself, let alone make a profit. The notion of an individual who starts a new business venture would be sufficient for him/her to be labeled as an entrepreneur. It is this characteristic that distinguishes entrepreneurship from the routine management tasks of allocating resources in an already established business organization. Though the definition tends to be somewhat simplistic in nature, it firmly attaches the nature of entrepreneurial action with risk-taking and the bearing of uncertainty by the individual (Swoboda, 1983)

In a Delphi study, Gartner (1990) found eight themes expressed by the participants that constitute the nature of entrepreneurship. They were the entrepreneur, innovation, organization creation, creating value, profit or non-profit, growth, uniqueness, and the owner-manager. The themes could be seen as a derivative and expansion of Schumpter’s earlier concept.

Expanding on Schumpeter’s Definition:

After digesting the numerous definitions of entrepreneurship, one would tend to see a strong link between these two terms: entrepreneurship and innovation. In retrospect, most of the definitions tended to be, to some extent, a re-work and expansion of Schumpeter’s definition of entrepreneurship (which is that of innovation being applied in a business context).

As defining the term of ‘innovation’ is highly debatable and would merit a paper on its own, the author has thus, for convenience, summarised the definition of innovation. Innovation can be perceived simply as the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.

In the author’s opinion, the difficulties of defining “innovation” could be the reason for the quandary one finds in attempting to arrive at a clear-cut definition of the term ” Entrepreneurship”.

Take for example, if someone starts another run-of-the-mill hot dog stand in the streets of New York, will he termed as an entrepreneur? According to Drucker’s definition, he will be seen as one. However, if the above definition by Schumpeter was used as a guideline, the answer is probably ‘NO’.

Why? The core of the matter lies in what is so innovative about setting up another hot-dog stand which are in abundance in New York. On the contrary, if he is the first one to start a stand selling hot-dogs with Oriental Sweet and Sour sauce topping; he could be termed as an entrepreneur (even based on Schumpeter’s requirement) as he has done what others have not done before. In the context of entrepreneurship, creativity and innovation are key points in the whole scheme of things.

In this manner, by adding “innovative” features to a product or services and setting up a business based on these additional features to compete in the existing market, new entrants may be able to gain this competitive advantage over existing market players.

In the case of the hot-dog seller, it may be argued that his addition of Oriental Sweet and Sour sauce toppings may be seen as nondescript. This runs in contrary to some scholars’ definition of entrepreneurship as requiring quantum changes in the products/ services to be justified as being entrepreneurial (Bygrave, 1985; Bygrave & Hofer, 1991).

Consistent with creating new products for sale, someone who starts a business by providing a totally new way of serving his customers/ clients is considered to be entrepreneurial too. Though, it is often argued that there are no real new products or services in a case where one does not look to the past products and services for ideas for improvements. Thus, the notion of incremental improvements should be accepted as being innovative too.

Innovation in the business sense may not necessarily involve, in the physical sense, the introduction of a new product or service. It can be in the form of what is commonly known as creative imitations. For example, if an individual starts selling a product that is already common in his area or country, he will not be seen as being entrepreneurial. However, if he is the first to sell the same product in a virgin locale or to an untouched market segment, he will be seen as an entrepreneur in his own rights.

Take Muhammad Yunus, for example. Yunus became an entrepreneur when he started a micro-loan program for the poor villagers in a rural part of Bangladesh named Grameen, with only US$26. The loan was divided among 42 villagers to assist them to buy small items such as combs, scissors, needles and other necessities to start their own home businesses. In the past 22 years, Grameen Bank has grown with over $2 billion loans granted. It has now become a model for several micro-loan facilities.

>From the following example, Yunus created banking and lending facilities in Grameen specifically for the poor villagers. Banking and lending money activities are not new but Yunus was the first to provide such facilities in a rural part of Bangladesh and that is definitely innovation and risk-bearing on his part as a social entrepreneur. In short, innovation need not arise mainly from a new product or service but it could be an old product or service finding a new market for penetration.

An individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture. A good example will be Jeff Bezos, the founder of Amazon, the successful Web-based bookstore. He was one of the first to sell books on a large scale using an online store and also patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet then as a viable marketing and sales channel for selling books.

Another example from the field of e-commerce is Stuart Skorman, the founder of Reel.com [http://Reel.com]. Reel.com [http://Reel.com] is essentially one of the first cyber movie store with a very large inventory of over a 100 000 videos. Though setting a movie store was revolutionary then, Reel.com [http://Reel.com] main distinction was being known as the first online store to expand by opening an offline store. The founder felt that by doing so, the online store could be an advertisement for the offline store and vice versa, thus strengthening this click and mortar business venture- an example of creativity and innovation applied in a profitable business context.

Conclusion:

This paper has started as an attempt to redefine the term of entrepreneurship but ended up ‘updating’ the wheel, based on the definition as proposed by Schumpeter. The paper expanded on this influential work by giving examples to illustrate what innovation in entrepreneurship was and hope that along the way, new insights were unearthed in the study of defining entrepreneurship.

In summary, the author hopes that this paper would further encourage the infusion of creative thinking and innovation within the educational system to nurture future entrepreneurs with a competitive edge. In the author’s view, the characteristics and capabilities to set up a new business venture based on doing things that have not done before should be encouraged. Innovation needs to be the cornerstone of entrepreneurship as opposed to the mere setting up of another new enterprise without implementing changes or adding features of improvements to the products and services provided and/ or its business processes.

How Do Chef Schools Work?

Culinary schools give aspiring chefs their best shot at making it to the big time, especially those admitted by the American Culinary Federation. Just like any other profession, many of the better hospitality establishments base their hiring practices not only upon the length of education the applicant provides, but also where that education was obtained. Tuition runs the gamut from relatively inexpensive courses offered by local community colleges all the way to the Culinary Institute of America's breathtaking $ 40,000 price tag. And what does not tuition cover? Oh, just uniforms, textbooks, cutlery, and other necessary kitchen equipment.

Curriculum different from school to school, but most of the culinary student's time is consumed in learning the ins and outs of cooking by actually doing it under close supervision. Participants not only prepare food, but also learn how to plan menus, minimize food costs, buy food and supplies in quantities, and how to appropriately choose and store food. Learning proper hygiene and local public health rules also play a large part in a culinary student's education.

Classes are sometimes offered all day, taking a complete eight hours, while at some schools, classes are broken into morning and afternoon sessions. There are usually lectures, and then demonstrations followed by hands-on practice time with students applying the techniques demonstrated earlier. Some schools even offer part-time professional classes to accomodate working cooks wanting to increase their formal education.

A number of educational seminars are available, among them:

The American Academy of Chefs Chair's Scholarship – Ten $ 1,000 scholarships awarded each year

The American Academy of Chefs Chaine des Rotisseurs Scholarship – Twenty $ 1,000 scholarships awarded annually

National Restaurant Association Educational Foundation (NRAEF) – Three annual $ 2,000 scholarships for high school seniors and undergraduate students

Because years of training and experience are needed to reach the level of executive chef in most well-paying restaurants, many students are serious about this profession beginning their training in high school through voluntary programs, then go on to a two- or four-year college or university. Apprenticeship programs offer more training afterward, and these come from individual eating establishments and are given by a personal mentor or from professional institutions and associations such as the American Culinary Federation.

Apprenticeship lasts usually about three years and is most often known as the years of "grunt work" – doing all the chopping, grating, peeling, slicing, and washing necessary to prepare the ingredients for the chefs. Even cleaning appliances, sweeping and mopping floors, and other seemingly unaffiliated "chef" work gets done by the apprentice as part of his or her learning experience. Often this "trial-by-fire" period separates the truly devoted caf├ęs-to-be from those who are merely good cooks.

It is not impossible to attain the status of executive chef without the benefit of formal education, but in today's job market, most establishments (especially the finer hotels and restaurants) now require some type of certification to work in this capacity. Like a degree of any sort, formal training in the culinary arts may not mean you are another Julia Child or Paul Prudhomme, but it does at least signify that you've got what it takes to get through the school. So stop trying to think of ways to take shortcuts, get your tuition together, and go learn what you need to attain your dream!

Shanghai Hotels – Hot Holiday Destination!

If you are planning to spend your next holiday vacation in a colorful city where you can perfectly enjoy the combination of Eastern and Western cultures then, without an iota of doubt, Shanghai would be your perfect destination. The largest city of China has all, which you, while being a modern person, would love to see and spend time with.

For its wonderful weather, excellent city beauties and natural attractions, Shanghai has always been a central of attractions for the travel enthusiasts of all around the globe; records say that eminent personalities like Bernard Shaw, Albert Einstein and Tagore visited this place a number of times.

With the growing popularity of Shanghai, travel and tourism industry has been massively developed in the city. According to a recent data, the tourism industry earns billions of dollars every year, so you can understand how demanding the city is in terms of a hot travel destination.

You see, in highly demanding travel destination it often becomes difficult to find great quality hotels at cheap price; but fortunately Shanghai is a place where you will not encounter the same problem. The Shanghai hotels industry offers you the facility to live comfortably while giving less pressure on your accounts book.

Cheap hotels not always mean dirty and unclean environment, if you stay at a small inn then you can experience Shanghai’s local food and discover its warmth culture with ease. If you are an avid traveler then you know that the small lodges will help you to get introduced with the local people, food and culture.

At the affordable Shanghai hotels you might not find the Three Star and Five Star luxury, but you will definitely experience the comfort and friendly people which will ensure that you have a pleasant holiday vacation. You will find each and every room and bathroom of these affordable Shanghai hotels very clean and hygienic. In a calm environment you will be offered good quality foods at very affordable prices. In short, the affordable Shanghai hotels will reduce your accommodation and food expenses and you can easily use the money for other activities like traveling and shopping.

The smartest way to look and book an affordable Shanghai hotel is doing so through an online portal. Over the internet, you will find a number of travel portals and traveling service providers and from there you can easily book your ticket to Shanghai and Shanghai hotels.

Technology in Sports

It today’s world, sport cannot go together without technology. With the ever growing development of new technologies, they have always tried to be implemented into sports. Because technology can give sports something nothing else can, an unmistakable truth. Or so they say. Due to the fact that people are, well, people, they are bound to make mistakes. It is because we are human, we are not robots, that we can make mistakes, while robots make them only if they are malfunctioning. This is especially emphasized in sports, where human eyes can often deceive their owners, the referees most importantly, but also players, coaches and the fans. That is why these days there are many discussions about installing video technology into sports, mostly football. What does technology actually mean for sports?

Here I would like to emphasize that there are already sports using technology, like tennis and cricket, to name some. It helped the referees a lot, to minimize and correct some mistakes they make. But apparently, not all problems are solved like this. Players that have been playing for a longer period of time, and have not grown up with these kinds of technologies, are not convinced that it works properly. This suspicion is probably understandable, because when they were first starting their professional sports careers, they did not probably even dream about something like this would exist. But this technology has been tested time after time, and skeptical players, such as Roger Federer, have learned to live with it and accept it, although probably not so reluctantly.

This technology used in sports is called Hawk-Eye line-calling system, or just Hawk-eye for short. It was invented by a British computer expert Paul Hawkins. It is now used in tennis, where six or more cameras, situated around the court are linked together, track the path of the ball. Then those six or more cameras combine their separate views and make a 3D representation of the path of the ball. For tennis, or basically any other sport, this means that any close line call can be checked, quickly and accurately. This is not always used on tennis tournaments, though. For instance, the French Open is not using this technology because the tournament is played on clay courts and thus the print of the ball on the ground can easily be seen. Maybe this will change one day, because you can’t always be 100% sure you are looking at the right print.

These days there have been a lot of talks about introducing this technology to the sport of football. The sympathizers of this idea have been especially loud after the South Africa FIFA World Cup 2010, where a lot of mistakes by the referees have been made (an Argentina goal allowed although the player was offside, England goal not seen in a crucial moment). However, referees are only human, and they are bound to make mistakes because they can not help it, so i do not think all those critics were fair to them. On the other hand, a recent statement was made from the UEFA president Michel Platini, who is not thrilled about the goal-line technology, saying that this would reduce football to a video game. I don’t believe that other sports who have this technology have been reduced to a video game. Furthermore, he also admits that referees can make mistakes and that there are many cameras on the field that can catch any disputable moment. So why not help football, or any other sport, to see these disputable moments clearly and to resolve them without making mistakes. Or is it better to hear a mass of critics every time something like this happens? I am sure the referees would like this kind of help, then they couldn’t be blamed for anything and wouldn’t have to listen to all the nonsense people say about them the other day, or worse.